The Comorian authorities and IMF staff have reached a staff-level agreement on economic policies and reforms for the second review under the 4-year ECF-supported program. The review, once formally completed by the IMF Executive Board, would release SDR 3.56 million (about US$4.7 million) in financing; Program performance has been generally good against the backdrop of persistent economic and institutional fragilities. With most end-2023 quantitative objectives met and key reforms being implemented, the authorities’ efforts are beginning to bear fruit with signs of macroeconomic stability. In 2023, economic growth rebounded as expected, inflation declined, the fiscal stance improved, and the international reserve position strengthened; Comoros continues to remain vulnerable to climate-related disruptions which could derail macroeconomic gains. Recent heavy rains have been catastrophic and could put a strain on already limited resources. The authorities are encouraged to engage with international partners to mobilize support for climate adaptation investments; Ahead of the government’s new mandate starting on May 26, the authorities reaffirmed their commitment to the reform program under the ECF.

An International Monetary Fund (IMF) team, led by Ms. Suchanan Tambunlertchai, held meetings in Moroni from April 24 – May 7, to discuss progress on economic and financial policies and reforms in the context of the second review of the 4-year Extended Credit Facility (ECF)-supported program. The staff-level agreement is subject to approval by the IMF’s Management and Executive Board. Completing the review will make available SDR 3.56 million (about US$4.7 million) to Comoros, bringing total disbursements under the arrangement to about $14.1 million.

Today, Ms. Tambunlertchai issued the following statement:

“Performance under the ECF-supported program has been generally good. Four out of five quantitative performance criteria at end-December 2023 were met. The ceiling on the accumulation of new external arrears was breached due to delays in debt repayments, highlighting weaknesses in liquidity management capacity. The authorities are working to ensure the clearance of all these external arrears prior to the Executive Board meeting scheduled for June. Progress on fiscal structural reforms has been commendable. Under the ECF program, the authorities met the structural benchmarks on widening the tax base in 2023, publishing the approved 2024 budget law, and improving tax administration efficiency by interconnecting customs and tax authorities’ databases. However, five structural benchmarks were not met on time, including key reforms related to the restructuring of the postal bank and the creation of the Anti-Corruption Chamber (ACC). Despite the delays, which reflect in part capacity constraints and organizational challenges, the authorities have been making progress towards the completion of the missed structural benchmarks. The selection of the ACC members was completed on May 23. 

“Economic activity in 2023 rebounded as envisaged, with real GDP growth estimated at around 3 percent, reflecting ongoing public investment projects and households’ stronger purchasing power amidst declining inflation (an annual average of 8.5 percent compared to 12.4 percent in 2022). In 2024, real GDP growth is projected to rise to 3.5 percent, driven by continuing infrastructure projects including the El Maarouf hospital, the Galawa hotel, and road construction and maintenance. Average inflation in 2024 is expected to decline to 3.3 percent. The current account deficit widened in 2023, in line with the rebound in growth. The external sector remains stable, with continued reserves accumulation at end-2023. On the fiscal front, targeted reforms in revenue administration and public financial management improved revenue collection, thus helping stabilize the domestic primary deficit at around 2 percent of GDP in 2023. Fiscal consolidation efforts are expected to continue this year, with the domestic primary deficit projected at around 1.4 percent of GDP. While financial sector vulnerabilities persist, the level of NPLs has stabilized and the authorities are advancing efforts to strengthen the supervision and regulatory frameworks.

“Climate-related vulnerabilities pose a threat to economic gains. Recent heavy rains have been catastrophic and could put a strain on already limited resources. The authorities are encouraged to engage with international partners to mobilize support for climate adaptation investments. Good performance under the ECF will safeguard macroeconomic stability, create fiscal buffers, and build resilience while catalyzing additional financial support for the country’s large financing needs. To this end, the authorities have reaffirmed their strong commitment to the reforms supported by the ECF program.

“The IMF team thanks the authorities and other counterparts for their excellent cooperation, as well as the candid and constructive discussions.”

Distributed by APO Group on behalf of International Monetary Fund (IMF).

On Thursday, May 23 2024, the European Union Ambassador to Seychelles H.E. Mr Oskar Benedikt participated in the launch of a new EU-funded project at Nature Seychelles’ Centre for Environment and Education at Roche Caiman.

The project, titled “Improving Climate Adaptation and Environmental Governance through Local People and Co-Management in Seychelles,” will be implemented by Nature Seychelles in Seychelles and has received €218,000 in funding support from the EU.

It will boost cooperation between government agencies, the private sector, and NGOs for collaborative wetlands management in Seychelles, and will offer opportunities for cooperation and partnerships among diverse actors.

The launch occurs on the heels of the International Day for Biological Diversity (IDB), which is on May 22 2024, whose theme this year is “Be part of the Plan”.

Dr. Nirmal Shah, CEO of Nature Seychelles, says the 2024 theme is a call to action for all stakeholders to halt and reverse biodiversity loss by supporting the implementation of the Global Biodiversity Framework, also known as the Biodiversity Plan.

“The upcoming project is exactly that. Nature Seychelles thanks the EU and the Ministry for its recognition that management of the environment is everybody’s business, and in fact everybody’s right,” he said.

“The project responds to the clamour for environmental equity, climate justice and “the right of every person to live in and enjoy a clean, healthy and ecologically balanced environment,” as enshrined in the Seychellois Charter of fundamental human rights and freedoms. The project will publicly recognise champions who are investing time, expertise, and resources into wetlands conservation.”

According to H.E. Mr Oskar Benedikt:  “The launch of this important project happens while we celebrate the EU month in Seychelles. It is the moment when we take stock of and appreciate the long-standing partnership between the EU and Seychelles, a partnership lasting already half a century. The launch of this grant today together with our new bilateral programme covering the period 2021-2027, which I signed with the Foreign Minister earlier, bear testimony to the continuity of this partnership in key areas such as environmental protection.”

Distributed by APO Group on behalf of Delegation of the European Union to the Republic of Mauritius and the Republic of Seychelles.

The organisation has provided relief efforts to families affected by the devastating Storm Daniel, which killed over 4,400 people and displaced 8,540 people. The activities aimed at promoting early recovery and supporting the transition towards more sustainable solutions for families.

“More than six months on from the storm, the families that were impacted continue the long road to recovery,” said Dax Bennet Roque, the Norwegian Refugee Council’s country director for Libya. “NRC’s support complements assistance provided by local actors to help families rebuild and strengthen their resilience. This support from the German Development Bank shows steadfast commitment to affected families and enables us to provide relief to families in the immediate and long-term.”

To support immediate needs and contribute to the resilience of affected families, NRC provided hygiene kits, personal protective equipment, and essential household item kits in the areas of Benghazi, Derna, Shahat and Jabal al Akhdar. Cleaning campaigns, joined by community volunteers, were also organised to remove rubble and improve urban health conditions. Overall, 17,762 families will benefit from this assistance.

As part of this project, NRC has completed the rapid rehabilitation of two schools in Derna. This initiative, developed in collaboration with Libyan local partners, focused on infrastructure rehabilitation and allows these schools to mitigate the impact of overcrowding and provide safe and uninterrupted access to education to children affected by the storm.

“The rehabilitation these two schools ensures that more than 1,578 children in Derna can continue learning in a safe and protected environment as Derna recovers from the storm. During and after an emergency, it is crucial that children and youth maintain access to safe learning opportunities,” added Roque

“We extend our appreciation for the cooperation with NRC, through KfW, to the Municipalities of Derna and Shahat in delivering crucial aid to thousands affected by recent floods in eastern Libya,” said the Embassy of Germany. “Rebuilding infrastructure, particularly educational facilities, is pivotal for community resilience and welfare. Acknowledging the significance of such endeavours during crises, we remain steadfast in our commitment to bolstering community resilience.”

Notes to editors

NRC has completed one cleaning campaign in Derna City and three campaigns in Shahat City. The cleaning campaigns and distribution were done in collaboration with local volunteers, supported by the Libyan Red Crescent and community organisations.
NRC remains committed to working closely with its donors, including KfW, and all key national and international actors to support communities affected by Storm Daniel. To date, NRC has provided direct assistance to more than 91,988 individuals impacted by the storm.
Since 2017, NRC has promoted the protection and well-being of communities in Libya affected by conflict and displacement. We work throughout the country to reach vulnerable communities through our education, shelter, livelihoods, MPCA, protection, and emergency response interventions. We strengthen the linkages between humanitarian action and development programming, focusing our efforts on communities impacted by displacement, conflict, and disaster.
Distributed by APO Group on behalf of Norwegian Refugee Council.

On May 24, U.S. Embassy Freetown, in partnership with U.S. contractor Triple Canopy, completed a six-month long training of 40 Republic of Sierra Leone Armed Forces (RSLAF) soldiers on how to operate and maintain multiple types of heavy-duty equipment. U.S. Ambassador Bryan Hunt celebrated the soldiers’ accomplishments with a graduation ceremony at the Triple Canopy location in Freetown.

The six-month long training was an in-depth course that started with classroom learning focused on maintaining and repairing heavy-duty equipment followed by practical training for operations in the field. This heavy-duty equipment training strengthened RSLAF’s engineering asset capacity.

During the graduation, Ambassador Hunt said, “Our countries share a common goal of fostering peace, security, and prosperity in the region…Through joint training exercises, knowledge sharing, and capacity building initiatives like this one, we continue to deepen our defense partnership and enhance our collective security.” The Ambassador also commended RSLAF’s commitment to gender equality and the selection of female candidates for this training. He reiterated the U.S. Government’s commitment to partnering with RSLAF to strengthen institutional capacity and congratulated the graduates on their achievement.

Distributed by APO Group on behalf of U.S. Embassy in Sierra Leone.